BB&T's 100% Financing, No PMI Loan... "CHIP" or Community Homeownership Incentive Program
Just a few week ago I had an agent open house at one ofÂ our new listing.Â David Boulware (803-251-1227) attended on behalf of BB&T (also provided lunch; THANK YOU.) Although I had heard about the Chip Program I really didn't know the details.Â Thanks to David I now have a fairly good understanding of the Chip Program works.
The program is called Community Homeownership Incentive Program orÂ "CHIP"Â for short. Qualifying buyers can get up to 100% financing (NO MONEY DOWN) with NO PMI (Private Mortgage Insurance). Here are a few details of a program that BB&T is offering, it seems like a great program for qualifying buyers.
Loan amounts up to $417,000.00
100% county median and 97% LTV/80%Â county median andÂ 100% LTV;Â LTV is5% less in a declining market, and10%Â less in aÂ severely declining market.Â Â ForÂ properties located in aÂ under servedÂ area 120%Â of theÂ HUDÂ medium incomeÂ limit forÂ LTV's < 97% orÂ 80% of the HUD median incomeÂ limit forÂ LTVs > 97%.
Home Buyer Education: Required
Can use approved down payment assistance program or qualified gift
Property: Single family residence, townhouse or condo
Minimum buyer contribution: $500.00
Reserves: 97% financing - one month PITI, 100% financing - two months PITI
To determine if a property is located in a HUD designated under served area, which eliminates the income limit for this program, take the following steps:Â
Â Enter the property address here to get the census tractÂ http://www.ffiec.gov/Geocode/default.aspxÂ
ThenÂ go to Freddie Mac's Under served Census Tract List (about halfway down this page)http://ww3.freddiemac.com/ds2/sell/affgold.nsf/frmStateOpenForm&State=NORTH+CAROLINA#0420.00Â Â Â Â
Â Â 9. Buyer Cred Qualifications
No 30 day delinquencies within the past 12 months. Derogatory credit must be explained. Collections may not have to be paid, but judgments must be paid off.
Student loan payments will not be counted in debt as long as payment will be deferred at least 36 months from loan closing.
For 100% financing, minimum credit score must be 660. No minimum for 97%.
Non-traditional credit sources can be utilized. Must be opened and maintained for 12 months. Minimum number is three sources of non-traditional credit.
Of course... Loans are subject to approval & this loan program can be modified or discontinued at anytime without notice.